AI lending platform Upstart has received conditional approval from the Office of the Comptroller of the Currency to establish Upstart Bank, N.A., advancing the company’s plan to launch a nationally chartered digital bank powered by artificial intelligence.

According to the company, the charter would reduce operational and regulatory complexity while enabling Upstart to offer its full suite of lending products nationwide.

The proposed Delaware-based bank will operate without physical branches, originate consumer loans across the US, and accept FDIC-insured deposits.

Upstart emphasized that its existing funding model will remain largely unchanged, with partner banks, credit unions, and institutional credit funds continuing to purchase the majority of loans originated on its platform.

The company still requires approval from the FDIC and the Federal Reserve before the bank can launch. Upstart said operations will begin only after all regulatory approvals are received and the OCC’s conditions for capitalization, governance, and operational readiness have been met.